1. Combine 1 cup water and sugar in a small saucepan. Bring to a boil; reduce heat, and simmer 3 minutes. Remove from heat; stir in ice cubes.
2. While sugar mixture comes to a boil, grate rind, and squeeze juice from orange to measure 1 tablespoon and 1/2 cup, respectively.
3. Place cherries and sugar mixture in a blender; process for 1 minute or until pureed, stopping as necessary to scrape sides. Stir in rind, juice, and 1 cup merlot; pour into an 8-inch square pan. Cover and freeze for 8 hours or until firm.
4. Remove mixture from freezer; scrape entire mixture with a fork until fluffy.